Recently Hong Kong has signed DTA with Romania and Russia, which will cut tax for cross-border trade and investors. Due to Romanian double tax agreement, income tax of Romania can be paid from any other tax which has the same income.
Withholding of tax in Romania will cut to current 16 percent to 5 or even 3 percent.
The income profit earned by Hong Kong’s residents will be enjoying to for full tax exemption.
Due to Russian DTA from Hong Kong will income tax paid by Russian residents or companies shall be allowed as a credit against any tax payable in respect of the same income in Russia.
Withholding of tax in Russia will cut from current 20 percent or 30 to even 3 percent.
The cap of 5 percent will be allowed if even one of the official owner has more than 15 percent of common profit of the company.
Profit from international shipping transport also will be enjoying to for full tax exemption. Hong Kong airlines which operating in Russia will pay tax only due to Hong Kong’s tax rate.